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WA Property Market Update August 2026

The WA property market is moving into a more balanced phase as we farewell August 2026 and head towards spring. After several years characterised by strong demand, limited supply and rapid price growth, buyers are beginning to have more choice, while higher interest rates continue to influence borrowing capacity and purchasing decisions.

The broader economic environment remains important. At its 11 August meeting, the Reserve Bank of Australia left the cash rate unchanged at 4.35 per cent, following three increases earlier in 2026. The RBA noted that inflation remains too high and that the effects of previous rate increases are still working their way through the economy.

For property buyers, investors and businesses, this reinforces the importance of looking beyond the headline sale price. Borrowing capacity, repayments, cash flow and the ability to manage future changes in interest rates should all be considered before committing to a purchase.

WA Office Property Market Update August 2026

Perth’s office market remained relatively steady through the first half of 2026, although there is an increasingly clear distinction between properties that meet modern occupier expectations and those that do not.

According to Herron Todd White’s July 2026 Month in Review, demand remains concentrated around well-located premium and A-grade office accommodation, while some secondary properties, particularly in fringe CBD locations, are experiencing softer demand. High construction and labour costs are also restricting the feasibility of major new developments, encouraging building owners to refurbish and reposition existing assets instead.

At the smaller end of the commercial market, there has also been interest from businesses choosing to purchase strata office accommodation rather than lease. Areas including West Perth, Leederville, Subiaco and East Perth may offer businesses opportunities to secure premises at a lower price point than premium CBD space.

For business owners considering this approach, however, the property decision and the finance decision need to work together. Purchasing premises can provide greater control and potentially build a long-term business asset, but it also ties up capital and introduces costs that leasing does not. The appropriate structure will depend on the business’s cash flow, borrowing position, growth plans and wider financial strategy.

With new office supply remaining constrained, quality, location and the ability of a property to remain attractive to future occupants are likely to be increasingly important considerations.

WA Residential Property Market Update August 2026

Perth’s residential market is showing signs of normalisation rather than a dramatic reversal. REIWA reported 630 sales transactions for the week ending 23 August 2026, while there were 7,204 properties listed for sale, up 129.1 per cent compared with the same week a year earlier. This substantial increase in available stock is giving buyers more choice than they had during the exceptionally tight conditions of recent years.

That does not mean Perth has suddenly become a weak market. REIWA’s latest median price data, updated on 25 August and covering the 12 months to July 2026, puts the Perth median house sale price at $950,000. The median unit price is $682,500, while the median price for land is $440,000. Median house rent sits at $750 per week, with units at $700 per week.

Herron Todd White has observed that buyers are taking longer to make decisions and becoming more selective as stock increases, particularly in some more affordable, mortgage-dependent parts of Perth. Conversely, established inner-city locations, prestige suburbs and several regional WA markets continue to show comparatively strong demand.

Rental conditions also remain tight. REIWA recorded 2,083 properties available for rent at the end of the week to 23 August, 6.8 per cent lower than a year earlier. This ongoing shortage continues to support rents, although investors need to assess far more than rental yield when weighing up a purchase.

For prospective buyers, greater stock can create opportunities to compare properties more carefully and avoid making rushed decisions. For sellers, realistic pricing and presentation may become increasingly important as buyers gain more alternatives. For investors, the combination of elevated borrowing costs, changing market conditions and differences between individual suburbs makes detailed cash-flow modelling particularly valuable before purchasing.

What Does the WA Property Market Mean for Your Finance Decisions?

The key message from the WA Property market is that conditions are becoming more nuanced. A rising market does not automatically make every property a good purchase, just as increasing stock does not necessarily mean buyers should wait. Your decision should ultimately be based on your circumstances, including borrowing capacity, deposit or equity position, repayments, expected cash flow and longer-term objectives.

Interest rates remain an especially important consideration. The RBA has held the cash rate at 4.35 per cent and indicated that it remains focused on bringing inflation back towards target. Its August forecasts do not expect inflation to return to the middle of the 2 to 3 per cent target range until early 2028. That makes it worthwhile to understand how a loan would perform not only under today’s conditions, but also under different repayment and cash flow scenarios.

Whether you are buying a home, refinancing, investing in property or considering commercial premises for your business, understanding your finance position before making an offer can help you make a more informed decision. The McKinley Plowman Finance team can help you understand your borrowing options and how they fit into your broader financial position. Contact us on (08) 9301 2200 or get in touch with the team to discuss your next property finance decision.

Further Reading & Data:

• HTW Month in Review
• REIWA Perth Market Insights

written by:

Paul Moran

Paul has over 35 years of experience in finding financial solutions for homebuyers, investors and business owners.
A licensed broker and member of the Mortgage & Finance Association of Australia (MFAA), Paul’s extensive experience includes 20 years with a major bank, seven of which were as commercial banking manager.
Paul delivers a holistic financial solutions to achieve the best possible outcome for a client’s personal or commercial lending needs. Paul also provides a comprehensive financial consultancy to business owners on commercial, equipment and invoice finance.